Bitcoin Price Collapse Predicted by Crypto Expert, Imminent Collapse Anticipated
In a recent interview on the David Lin Report, financial news channel on YouTube, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, issued a warning for Bitcoin holders. McGlone, who has a history of accurately calling key price levels, including the surge to $100,000, now predicts a potential price crash for the world's largest cryptocurrency.
The Bitcoin price has soared to historic highs this year, crossing the $100,000 mark on December 6, marking a major psychological threshold. However, McGlone pointed out that the current market is crowded with long positions, making it harder for BTC to sustain upward momentum.
The surge in Bitcoin's price, according to McGlone, is a textbook example of "selling when there's yelling," meaning that investors often get caught up in the euphoria at the top. Volatility signals are shifting, with the Volatility Index (VIX) hitting its lowest level of the year at around 14.2 in August, while Bitcoin simultaneously reached new highs.
Stock market benchmarks such as the S&P 500 have also posted modest returns in the same period, leaving digital assets struggling to show dominance. The sheer weight of speculative exposure has left Bitcoin vulnerable to a potential retracement rather than setting the stage for exponential growth.
McGlone's warning comes as the Bitcoin price has added only about 8% since crossing $100,000, while gold has appreciated roughly 30% in the same period. The 48-month correlation between Bitcoin and the S&P 500 now stands at 0.6, highlighting Bitcoin's transformation into a risk-on asset. This correlation underscores Bitcoin's movement in tandem with stock market performance rather than acting as an independent store of value.
If the predicted potential price crash for Bitcoin occurs, it could erase nearly all of its gains. However, it's important to note that market predictions are never certain, and Bitcoin's price could also continue to rise. McGlone's warning serves as a reminder for investors to exercise caution and consider their risk tolerance when investing in the volatile cryptocurrency market.
